The BCRA Kept the Monetary Policy Rate Unchanged

The Board of the BCRA has kept the monetary policy rate unchanged. For the second month in a row, monthly inflation exhibited a significant slowdown against May in line with BCRA's expectations.

In June, the monthly inflation rate was 6%, down 1.8 p.p. against May and down 2.4 p.p. against April. This slowdown had an impact on the categories and items of the consumer price index (CPI). Core inflation stood at 6.5% (-1.3 p.p. monthly), the lowest record since January. The slowdown stemming from lower prices for fruits and vegetables accounted for the performance of the seasonal category and the food and non-alcoholic beverages item. This shows that the adverse effects of the drought, which caused a rise in the previous months, have cleared.

The BCRA’s interest rate policy seeks to obtain positive real returns on investments in domestic currency to preserve monetary and foreign exchange stability.

The BCRA will keep on monitoring the development of the general level of prices, the forex market dynamics, and the monetary aggregates to calibrate the interest rate and liquidity management policies.

July 13, 2023

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